Debt Capitalisation definition
Examples of Debt Capitalisation in a sentence
The Proposed Debt Capitalisation is subject to certain conditions and there is no certainty or assurance as at the date of this announcement that the Proposed Debt Capitalisation will be completed or that no changes will be made to the terms thereof.
The Conversion Price of S$0.028 per Conversion Share was arrived at after taking into consideration, inter alia, the recent share price of the Company, the prevailing market conditions and financial performance of the Group, the rationale for the Proposed Debt Capitalisation as set out in paragraph 4 below, and following arm’s length negotiations between the Company and the Lender.
The Consideration was determined after arm’s length negotiation between the Vendor and the Purchaser with reference to, among other things, the adjusted net assets value of the Target Company (after the completion of the Debt Capitalisation).
The Directors collectively and individually accept full responsibility for the accuracy of the information given in this announcement and confirm after making all reasonable enquiries that, to the best of their knowledge and belief, this announcement constitutes full and true disclosure of all material facts about the Proposed Debt Capitalisation and the Group, and the Directors are not aware of any facts the omission of which would make any statement in this announcement misleading.
As stated in the announcement of the Company dated 19 December 2016, the Resumption Proposal as approved by the Listing Appeals Committee of the Stock Exchange involves, among others, the Open Offer, the Debt Capitalisation, debt settlement and release of all outstanding financial results.
There are no share borrowing arrangements entered into to facilitate the Proposed Debt Capitalisation.
The Company will be seeking Shareholder’s approval for the DCA and the Proposed Debt Capitalisation at an EGM to be convened on a date to be announced later.
If any of the Conditions Precedent is not satisfied within two (2) months from the date of the Debt Capitalisation Agreement, the Debt Capitalisation Agreement shall lapse and cease to have effect as between the Company and the Lender.
The Board announces that on 30 June 2017, GMI and LFC entered into the GMI Debt Capitalisation Agreement, pursuant to which GMI and LFC have conditionally agreed to convert the GMI Debt into a maximum of 721,428,571 LFC Conversion Shares (conversion price and number of LFC Conversion Shares are subject to adjustment to reflect the LFC Share Consolidation) and terminate the GMI Convertible Bond Deed in accordance with the terms of the GMI Debt Capitalisation Agreement.
In light of the above, the Board is of the view that the terms and conditions of the GMI Debt Capitalisation Agreement (together with the Conversion Price) are in the best interests of the Company and the Shareholders as a whole.